All operations at a food supplier in China were suspended after Sunday reports revealed expired food was sold to local McDonald's and KFC restaurants.
Shanghai-based TV station Dragon TV reported that Husi Food Co., Ltd. sold expired chicken and beef it labeled with new sell-by dates to McDonald's, KFC and Pizza Hut chains, according to the Associated Press.
Footage from the report also showed Husi employees picking up food from the floor and mixing expired and fresh meat together, according to Reuters.
Business operations at Husi food, owned by U.S.-based OSI Group, were shut down pending an investigation. McDonald's and Yum Brands Inc., owner of KFC, Pizza Hut and Taco Bell, both said they have launched internal investigations.
"Food safety is a top priority for McDonald's," the fast-food chain said according to the AP. The company said it strictly adheres to consumer safety regulations and has "zero tolerance for illegal behavior."
The incident places the spotlight again on food suppliers in China, who have been plagued by scandals in the last few years. KFC sales dropped 37 percent after a TV station reported in December 2013 that chicken suppliers violated drug use regulations in their poultry, the AP reported.
Earlier this year, a Wal-Mart supplier was under fire for selling donkey meat contaminated with fox meat.
Patrons have already taken a step back from eating at fast food restaurants after the latest scandal.
"For now, I won't go to eat at McDonald's or KFC, at least until this whole thing settles down," Xu Xinyu, 24, told Reuters while eating at a noodle shop in Shanghai.
But in a country where the fast food industry is worth $174 billion, many diners say they are used to the food scares, according to Reuters.
"The incident won't change me eating there," Liu Kan, a 24-year-old Nanjing resident, told the AP. "There have been negative reports all the time, McDonald and KFC are the leaders in the industry."